Route1 (ROI) Q2 2026 earnings summary

Executive summary

• Q2 2026 saw revenue decline to $2.40 million from $3.69 million year-over-year, mainly due to lower device and professional-service activity.

• Gross margin expanded to 45.2% from 36.5% in Q2 2025, reflecting a stronger revenue mix.

• Annualized recurring revenue base surpassed US $1.4 million as of August 1, 2026.

• Operating cash flow turned positive at $0.304 million, up from negative $0.033 million in Q2 2025.

• Net loss improved to approximately $0.001 million from $0.061 million year-over-year.

Financial highlights

• Revenue: $2.40 million in Q2 2026, down from $3.69 million in Q2 2025.

• Gross profit: $1.09 million, down from $1.35 million, but gross margin rose to 45.2%.

• Adjusted EBITDA: $0.043 million, down from $0.269 million in Q2 2025.

• Six-month operating cash flow: $0.403 million, up from $0.094 million year-over-year.

• Operating expenses for six months declined 11.8% year-over-year.

Outlook and guidance

• Management prioritizes converting commercial opportunities into recurring revenue, EBITDA, and free cash flow.

• Multiple municipal and university opportunities are in advanced stages, with potential annual recurring revenue per contract ranging from US $20,000 to over US $100,000.

• Focus remains on expanding recurring support programs and operational engagements.